VHM Limited (ASX:VHM) may have uncovered its third major project with drilling results from within the explorer’s Nowie prospect area indicating that the Prospect hosts a high-grade rare earth, zircon, and titania ore body.
Located 22km north of the Company’s proposed Goschen treatment plant, drilling at Nowie showed that the area contains valuable heavy minerals up to two times higher than the highest-grade areas of the Goshen Ore Reserve, with high-grade zones at Nowie boasting an average THM grade of 7.5 per cent compared to the 4.0 per cent within Goschens Ore Reserve.
Results come from a fifty-hole drilling program completed over the Prospect, with the combined drilling and geophysical data indicating that the Nowie deposit is at least 3km wide and is up to 11km long while remaining open in both the north-west and south-west strike direction.
Drill results showed continuity of THM grade and mineral assemblage between sections over the area drilled, with mineral assemblage and particle analysis also showing continuity between the deposit and the highest grade areas of the 198.7Mt TREO Goschen Deposit.
Geological interpretation of the new target has concluded that the new deposit is formed from multiple high-grade strandline systems occurring above a thick sequence of THM grade sheet style mineralisation up to 20m thick. This is particularly compelling as geophysics data confirms that there is a second strandline system to the west of the current Nowie drilling, giving the explorer an avenue for immediate follow-up.
The new discovery has the potential to further bolster the Company’s already significant heavy minerals and has confirmed that it has outlined a new critical mineral province in Victoria stretching over 55km from the recently unveiled 192 Mt @ 3.1% THM Cannie Project over Goschen and beyond Nowie.
The Company said that while it will continue to evaluate the results from the current campaign, it has already begun preparing follow-up work programs to evaluate the true extent of mineralisation, with extensive resource definition work planned throughout the rest of the year.
“These are excellent results from our initial drilling program at Nowie and they firmly support our plan to continue developing this critical minerals province in Victoria’s North West. The Goschen Project has already illustrated it is a highly economic project and the higher grades at Nowie are a welcome addition to the Company’s rare earths and mineral sands project portfolio,” Managing Director Graham Howard said.
“Having a third potential project option to consider opens several possibilities for the Company that we will now introduce to discussions with interested offtake partners and potential strategic investors.”
VHMs Australian Stock Exchange-listed share price has risen 6.4 per cent today and is currently trading at 58c (12.53 pm UTC+ 8 hours).